Santarus, Inc. (NASDAQ: SNTS) and Depomed, Inc. (NASDAQ: DEPO)
today announced that they have entered into a promotion agreement
granting Santarus exclusive rights to promote Depomed’s GLUMETZA(R)
(metformin hydrochloride extended release tablets) prescription
products in the U.S. GLUMETZA is a once-daily, extended-release
formulation of metformin that incorporates patented drug delivery
technology and is indicated as an adjunct to diet and exercise to
improve glycemic control in adults with type 2 diabetes mellitus.
Santarus expects to train its field sales representatives in the third
quarter and to begin promotion of GLUMETZA brand products in the
fourth quarter of 2008. Depomed reported GLUMETZA net sales of $5.2
million in the first quarter of 2008.

Metformin is widely used for the treatment of type 2 diabetes, but
many patients do not achieve optimal dosing levels due to
gastrointestinal (GI) side effects. The advantage of GLUMETZA’s
delivery system is that it allows physicians to rapidly titrate dosing
up to 2000 mg a day, which results in a more optimal level of glycemic
control without significantly increasing GI side effects compared to a
daily dose of 1500 mg of immediate-release metformin.

“We view GLUMETZA as an important addition to our product
portfolio as it addresses a large and growing market in type 2
diabetes,” said Gerald T. Proehl, president and chief executive
officer of Santarus. “We believe that GLUMETZA is an excellent product
to leverage our sales organization, with good overlap in our called-on
physicians in the primary care market and with growth potential. Based
on our current launch plans, we expect increased promotional expenses
for GLUMETZA commencing in the third quarter of 2008; however, we
believe that the net impact of GLUMETZA will be neutral in the fourth
quarter of this year and accretive in 2009 and beyond.”

Under the terms of the promotion agreement, Santarus paid Depomed
a $12 million upfront fee, and based on the achievement of specified
levels of annual GLUMETZA net product sales, Santarus may pay Depomed
one-time sales milestones totaling up to $16 million. Depomed will
continue to record revenue from the sales of GLUMETZA and will pay
Santarus a fee ranging from 75% to 80% of the gross margin associated
with net sales of GLUMETZA, defined as net sales less cost of goods
and product-related fees paid to Biovail Laboratories. Santarus will
be responsible for all costs associated with its sales force and for
all other marketing expenses associated with its promotion of
GLUMETZA. A joint commercialization committee has been formed to
oversee and guide the strategic direction of the GLUMETZA promotion
efforts in the U.S. Depomed will be responsible for overseeing product
manufacturing and supply, and retains the option to co-promote
GLUMETZA in the future to obstetricians and gynecologists (Ob/Gyn).

“We are pleased to work with a highly motivated and committed
partner like Santarus to focus on driving new prescriptions, launching
our new 1000 mg dosage strength and increasing sales of GLUMETZA,”
said Carl Pelzel, president and chief executive officer of Depomed.
“Santarus has a field-based commercial organization of over 300 sales
representatives to promote GLUMETZA to their targeted physicians. This
organization has demonstrated good results in its promotion of ZEGERID
in the highly competitive proton pump inhibitor market, and we look
forward to strong results with GLUMETZA.”

Conference Call

Santarus has scheduled an investor conference call regarding this
announcement at 10:00 a.m. Eastern time (7:00 a.m. Pacific time)
today, July 22, 2008. Individuals interested in participating in the
call may do so by dialing 888-803-8275 for domestic callers, or
706-643-7736 for international callers. A telephone replay will be
available for 48 hours following conclusion of the call by dialing
800-642-1687 for domestic callers, or 706-645-9291 for international
callers, and entering reservation code 56790888. The live conference
call also will be available via the Internet by visiting the Investor
Relations section of the company’s Web site at www.santarus.com, and a
recording of the call will be available on the company’s Web site for
14 days following the completion of the call.

About Diabetes

Diabetes affects an estimated 24 million Americans and its
incidence is increasing by approximately 1.5 million new cases each
year in the U.S. alone. Approximately 90 percent to 95 percent of
people with diabetes suffer from type 2 diabetes. Diabetes is the most
common metabolic disease in the world and the sixth deadliest disease
in the U.S. It is the leading cause of blindness, end-stage renal
disease and non-traumatic loss of limb. Diabetes can also lead to
heart disease, stroke, high blood pressure, kidney disease, and other
serious conditions. In the U.S., the public health cost of diabetes is
more than $170 billion per year. In August 2006, the American Diabetes
Association and the European Association for the Study of Diabetes
issued a consensus statement recommending that treatment with
metformin be initiated at diagnosis along with diet and lifestyle
changes in patients with type 2 diabetes.

About GLUMETZA

GLUMETZA (metformin hydrochloride extended release tablets) is
indicated as an adjunct to diet and exercise to improve glycemic
control in adult patients (18 years and older) with type 2 diabetes.
GLUMETZA may be used concomitantly with a sulfonylurea or insulin to
improve glycemic control in adults. GLUMETZA is available in 500 mg
and 1000 mg tablets.

GLUMETZA is contraindicated in patients with renal disease or
renal dysfunction (e.g., as suggested by serum creatinine levels
greater than or equal to 1.5 mg/dL in males and greater than or equal
to 1.4 mg/dL in females), known hypersensitivity to metformin HCl, and
acute or chronic metabolic acidosis, including diabetic ketoacidosis
with or without coma. As with all metformins, there is a boxed warning
regarding lactic acidosis with GLUMETZA due to metformin accumulation
during treatment. Lactic acidosis is a rare but potentially fatal
occurrence. It may also occur in association with a number of
pathophysiologic conditions. The risk of lactic acidosis increases
with the degree of renal dysfunction and the patient’s age, especially
patients 80 years of age or older. In clinical trials of GLUMETZA
combined with a sulfonylurea, the most common side effects included
hypoglycemia, diarrhea, and nausea. For additional information on the
product, please access the prescribing information at
www.glumetzaxr.com.

About Depomed

Depomed, Inc. is a specialty pharmaceutical company with two
approved products on the market and other product candidates in its
pipeline. The company utilizes its proven, proprietary AcuForm(TM)
drug delivery technology to improve existing oral medications,
allowing for extended, controlled release of medications to the upper
gastrointestinal tract. Benefits of AcuForm-enhanced pharmaceuticals
include the convenience of once-daily administration, improved
treatment tolerability and enhanced compliance and efficacy. GLUMETZA
(metformin hydrochloride extended release tablets) is approved for use
in adults with type 2 diabetes. ProQuin(R) XR (ciprofloxacin
hydrochloride) extended release tablets are approved in the United
States for the once-daily treatment of uncomplicated urinary tract
infections and is being marketed in the United States within the
urology, Ob/Gyn and long-term care specialties by Watson
Pharmaceuticals. Product candidate Gabapentin GR(R) is currently in
clinical development for the treatment of neuropathic pain and
menopausal hot flashes. Additional information about Depomed may be
found on its website, www.depomedinc.com.

About Santarus

Santarus, Inc. is a specialty pharmaceutical company focused on
acquiring, developing and commercializing proprietary products that
address the needs of patients treated by gastroenterologists or
primary care physicians. The company’s current marketing efforts are
primarily focused on ZEGERID(R) Capsules and Powder for Oral
Suspension. These products are immediate-release formulations of
omeprazole, a widely prescribed proton pump inhibitor. More
information about Santarus is available on the company’s Web site at
www.santarus.com.

Statements included in this press release that are not a
description of historical facts are forward-looking statements. The
inclusion of forward-looking statements should not be regarded as a
representation by either Santarus or Depomed that any of their
respective plans will be achieved. Actual results may differ
materially from those set forth in this release due to the risks and
uncertainties inherent in Santarus’ and Depomed’s businesses,
including, without limitation: risks related to the promotion
arrangement between Depomed and Santarus (including Santarus’ ability
to increase market demand and sales of GLUMETZA products; competition
from other products, unexpected adverse side effects or inadequate
therapeutic efficacy of GLUMETZA products; the ability of Depomed to
ensure continued supply of GLUMETZA products in the U.S. market; the
scope and validity of patent protection for GLUMETZA products; and the
potential for termination of the promotion arrangement); and other
risks detailed in Santarus’ and Depomed’s prior press releases and
public periodic filings with the Securities and Exchange Commission.

You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof.
All forward-looking statements are qualified in their entirety by this
cautionary statement and neither Santarus nor Depomed undertakes any
obligation to revise or update this news release to reflect events or
circumstances after the date hereof. This caution is made under the
safe harbor provisions of Section 21E of the Private Securities
Litigation Reform Act of 1995.

AcuForm(TM) is a trademark of Depomed, Inc. GLUMETZA(R) is a
trademark of Biovail Laboratories International S.r.l. licensed
exclusively in the United States to Depomed, Inc. Santarus(R) and
ZEGERID(R) are registered trademarks of Santarus, Inc.

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